Stop & Shop Strike Costs Company an Estimated $110 Million

The 11-day strike at Stop & Shop stores in New England could impact the company’s operating profit by $110 million. The United Food & Commercial Workers union continued negotiations during the strike and reached a new contract agreement Sunday, April 21.

Stop & Shop’s parent company, Ahold Delhaize, estimated an impact of $90 million to $110 million on Stop & Shop’s 2019 underlying operating profit.

Union organizing for the strike began in February, after Stop & Shop made plans to cut workers’ wages and benefits. More than 31,000 workers from 246 Stop & Shop stores walked out on April 11. The strike gained wide ranging support: from customers that honored the strike by not crossing picket lines, with the Teamsters union providing strong support by cutting off deliveries to stores, along with non-union delivery drivers who also honored the strike by not delivering to Stop & Shop.

Terms of the new three-year contract, negotiated on Sunday, were not publicly disclosed, but the strike is over and the workers are now back on the job. Labor actions like these only offer temporary benefits, as this industry and many others will be rapidly transformed by automation.



Photo: Image from Support Stop & Shop Workers